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How we Can Predict the Demise of Dollar and the Rise of EuroBY: Bjarne Dedenroth | Category: Finance | Submitted: 2011-04-22 17:31:28
Would a collapse of the dollar as the world's reserve currency be the end of the world as we know it and could the euro potentially replace it, perhaps sooner than you may think? In this article, we will go through a strategic assessment on the issue of the world reserve currency of choice, but to the question of whether it will influence your life and the world as you know it, the answer seems unequivocal: Most definitely! Introduction Someone once said that it's hard to predict, especially about the future! Sounds like a relatively sensible sentiment, so let's instead try to go through some strategic observations - as they relate to this question - to see if we can address some of the factors of interest that may influence the outcome in terms of determining whether the world will soon move to the euro as the world currency of choice, i.e. the currency to be used when trading in energy (incl. oil), commodities, and gold as well as silver and so on. A widespread use of barter (paying for goods with other goods) as currency is hard to imagine and most certainly economically counterproductive. Just imagine what you would do if you had to buy a kilo of potatoes and your only possession were a house and 74 cows? Try to bring that with you the next time you go on vacation! A misnomer, a claim - and a whole 'lotta' pain I postulate that neither gold nor silver have any intrinsic value other than a perceived value based on the extent to which these minerals are used, for instance, in the production process. Other than that, they are, much like any currency in the world, limited to representing the value we deem appropriate; which, again, is based on perception rather than actual measurement! If we determine and/or perceive something else, they will inevitably and capriciously fall back to the implied assumption of the initial claim. The ones who do not see how and when such change will emerge are likely to suffer the pain... a whole 'lotta' pain. A gold-based currency: a solution... or illusion? Basing a money supply on gold or silver is just as illusory as basing it on paper money; or, for that matter, electronic money. Granted, a gold- or silver-based standard does come with one distinct advantage: neither gold nor silver can be endlessly printed! The ratio, on the other hand, between the amount of metal available and the nominal value of money, may very well be changed; if, for nothing else, as a cover of incompetency and to favor and protect the guilty. Personally, I'm in favor of basing the money supply on urine: it typically has the same golden color as gold, but it's cheaper to handle, and we have to handle it anyway! Also, a urine-based money supply comes with at least four significant advantages over anything else the world has so far utilized in that such a standard: 1. instills social justice and stability into the fabric of society automatically; 2. prevents excessive accumulation of power with the inevitable abuse and destruction as a consequence; 3. supports the elimination of world hunger; and 4. provides for an era of unprecedented peace and prosperity. Take that with you to the bank! The premise Why would a demise of the dollar occur? This move is not too complicated to call, at least not in terms of the inclination: The world, in general, and China, Iran, Russia, and Venezuela in particular, stand to benefit tremendously from such a move. Likewise, countries such as Brazil and India stand to gain significantly as well, especially if they embrace the strategic implications involved. A concomitant effect of bolstering the uprisings in the Middle East is not entirely inconceivable. Furthermore, it may be argued that these countries almost have to make such a move in order to undermine the power base of USA and to ensure the highest degree of stability and prosperity for themselves. The key question The key question is: Does the world have a better alternative? Normally, it is considered rather rude to answer a question with yet another question, but please bear with me for a moment: Which alternative do you see as a better option for the world at large? It's hard to spot an option that is significantly better, although it could be argued that the move away from the US dollar as the reserve currency of the world appears to be a rapidly appealing proposition; an increasingly tempting and safe bet to make, at least in relative terms, and therefore is an easier call to make than trying to predict what will emerge as replacement. The consequence of eating dogs Could it signal the fall of the American empire, as we know it, if the world moves away from using the US dollar as the primary reserve currency? Perhaps surprisingly to many, the answer is not necessarily a resounding and unambiguous 'yes'. That signal - though perhaps not visible for everyone - has been staring you perseveringly in your eyes for quite some time now. In China they eat dogs. You may find it distasteful or even repugnant, but all it takes is for us to agree that it's okay, then it's okay; and they taste great... if you happen to like the taste of dogs, of course. When you encounter a sick dog howling from pain due to a sickness from which it cannot recover, the benevolent thing to do is to put it out of its misery! Article Source: http://www.writearticles.org/ About Author / Additional Info: Bjarne Dedenroth specializes in strategic architecture and the optimization of system structures regardless of context and can be contacted at http://www.attainivi.org or http://www.levitisanton.com. Comments on this article: (0 comments so far)
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